A Yield Curve Constructed Using Treasury Securities Has Each of the Following

question 50

Multiple Choice

A yield curve constructed using Treasury securities has each of the following components embedded in the nominal interest rates ________.

• A)the real rate,expected inflation and a default risk premium
• B)expected inflation,a default risk premium and a maturity premium
• C)the real rate,expected inflation,and a maturity premium
• D)the real rate,a default risk premium and expected inflation

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